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How to calculate overtime hours with holiday

I am new to working with payroll, and the holiday is throwing me off. We pay overtime at time and a half, and if you work on a holday, we pay holiday pay at time and a half as well. I am working on timesheets and am hoping someone can help me. If an employee works 48 hours on a holiday week, where she worked sun, mon, tues and wed of the holday week, how do I calculate overtime and holiday pay. Each day was a 12 hour shift. So I know she should get 12 hours of holiday pay, but would it be 36 regular hours and 12 holiday? Or 40 regular hours, 12 holiday hours, and 8 overtime hours, but it seems like this way pays them twice for the same day. I don't mean to sound stupid, but it is just throwing me, and I don't want to make a mistake!

 

Thanks!

Re: How to calculate overtime hours with holiday

  • If my DH works 48 hrs on a holiday week (Monday being the holiday and he was off), he gets 48 hrs of regular pay - anything after 48 hrs is over-time rate.

    In your situation though, the employee worked Monday (the actual holiday). Is a 12-hr shift considered a regular shift, or is it considered overtime after 8 hrs?

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  • Assuming your company overtime is anything over 40 hours, this is how it would have worked back when I worked retail (the last time I worked someplace that would be open on holidays.

    On holidays, you get your holiday pay whether you work or not. If you work, your hours are paid at time and a half. So working on a holiday is the equivalent of double time and a half. Then anything over 40 hours is overtime at time and a half as well.

     So for your employee, she would have 40 hours regular pay, 8 hours holiday pay, and 16 hours at the overtime time and a half rate (the 8 hours she worked monday plus the 8 hours over 40).

    If your company does not pay holiday pay to employees regardless of whether or not they worked (which is sucky), then she would only earn 40 hours at regular pay and 16 hours at the overtime time and a half rate.

  • The law does not require holiday pay so the only legal requirement is that they receive 8 hours at time and a half.  It can be qualified as holiday pay, overtime, whatever label you want to use.  Unless there is some state requirement for daily overtime like California.
  • As PP said, unless you're in a state that calcs overtime daily, and assuming all 4 days you mentioned were in one week, I think it is this:

     

    S: 12 hours at straight time rate

    M: 12 hours at time and a half

    T:  12 hours at straight time

    W: 4 hours at straight time, 8 hours at time and a half:

    Total:

    28 hours at straight time rate

    20 hours at time and a half. 

    That said, if for some reason the holiday pay is limited to a set number of hours (for isntance, 8), then maybe you don't need to pay 12.

    Isn't there some sort of handbook that talks about how holiday pay is treated? 

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